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1Q17 Earnings Release


1Q17 Earnings Release

EZTEC begins 2017 with R$31 million in Net Income

Gross Margin of 47% and Net Margin of 33%

São Paulo, May 11, 2017 - EZTEC S.A. (BOVESPA: EZTC3) celebrates its 38th anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the first quarter of 2017 (1Q17). Except where stated otherwise, EZTEC’s operating and financial information is presented on a consolidated basis and in Brazilian real (R$), in accordance with Generally Accepted Accounting Principles in Brazil ("BR GAAP") and the International Financial Reporting Standards (IFRS) applicable to real estate developers in Brazil, as approved by the Accounting Pronouncement Committee (CPC), Securities and Exchange Commission of Brazil (CVM) and Federal Accounting Board (CFC).

Since January 1st, 2013, the rules of the IFRS 10 and IFRS 11 were taken into effect. These rules regard the projects with shared control. When adopting the norms of the CPC 19, a share of the Assets and Liabilities, Revenues and Expenses stop being consolidated proportionally to the Company´s stake. These changes will affect neither the Shareholder’s Equity nor the Company’s Net Income.

OPERATING AND FINANCIAL HIGHLIGHTS:

  • By the end of the first quarter of 2017, EZTEC reported a Cash Equivalents and Financial Investments position of R$589 million. By excluding the Gross Debt of R$348 million (exclusively composed of SFH financing), the Company’s Net Cash stands at R$241 million, of which R$30.9 million was Cash Generation in 1Q17. This is complemented by Performed Receivables from real estate projects of R$500 million, which is available for securitization and yields IGP-M + 10 to 12% p.a.;
  • Net Revenue reached R$97 million in 1Q17;
  • Gross Profit totaled R$46 million, with Gross Margin of 47.2% in 1Q17;
  • EBITDA reached R$11 million for a EBITDA Margin of 11.3% in 1Q17;
  • Net Income reached R$32 million, with Net Margin of 33% in 1Q17;
  • In the 1Q17 EZTEC has not launched any project;
  • EZTEC’s Contracted Sales, net of rescissions, reached R$154 million in the 1Q17;
  • On March 31th, 2017, the Company’s Landbank totaled R$5.5 billion in own PSV. The average acquisition cost for these plots, including costs regarding increases in constructive potential, is 13.6% of the PSV;
  • A Dividend Distribution in the amount of R$180,213,662.18 was approved in the shareholders’ General Assembly, representing a distribution of R$1.09 per share and a payout of 78.3%.

To access the Earnings Release, click here.

Conference Calls

English
May 12th, 2017
11:00 a.m. (New York Time)
12:00 p.m. (Brasília Time)
Ph.: +1 (412) 317-5450
Code: EZTEC

Replay:
+1 (412) 317-0088
Code: 10105007
Webcast: Click here

Portuguese
May 12th, 2017
09:30 a.m. (New York Time)
10:30 a.m. (Brasília Time)
Ph.: +55 (11) 2188-0155
Code: EZTEC

Replay:
+55 (11) 2188-0400
Code: EZTEC
Webcast: Click here

For further information contact:
EZTEC S.A. - Investor Relations
Phone: +55 (11) 5056-8313
E-mail: ri@eztec.com.br
www.eztec.com.br/ir

ABOUT EZTEC:

With a track record of 38 years, EZTEC is one of the most profitable publicly held companies in the Brazilian real estate industry. Through its totally integrated business model, the Company has already launched 121 projects, totaling more than 3.5 million sq.m. of built area and area under construction, and 24,475 units. EZTEC is listed on the Novo Mercado Special Corporate Governance segment of the São Paulo Stock Exchange (BM&FBOVESPA) under the ticker EZTC3.

"This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of EZTEC. These are merely projections and, as such, are based exclusively on the expectations of the Company‘s management concerning the future of the business and its continued access to capital to fund its business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in the Company‘s filed disclosure documents and are, therefore, subject to change without prior notice".

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Contact IR

Telephone: +55 11 5056 8313
E-mail: ri@eztec.com.br